Treasury yields pared their early session climb after Federal Reserve officials held interest rates steady and signaled they expected to cut them one more time this year.

Treasury yields rose on Thursday alongside oil prices as investors weighed the latest developments in the U.S.-Iran war.

By Gertrude Chavez-Dreyfuss NEW YORK, March 18 (Reuters) - Foreign holdings of U.S. Treasuries rose in January, data from the Treasury Department showed on Wednesday, recovering from a decline in December as investors returned to the market amid generally elevated yields and shifting expectations for Federal Reserve policy.

The 10-year Treasury yield was close to its “fair value” estimate in February, based on the average of three models.

U.S. Treasury yields were moving lower on Monday as both stocks and bonds were rebounding from a recent bout of selling. The U.S. dollar also declined with the move in yields. Oil prices have moved off their highs,

Benchmark U.S. Treasury yields will drift only slightly higher over coming months despite potential inflationary pressures sparked by the U.S.-Israel war against Iran, according to a Reuters poll of bond strategists who have barely changed their forecasts from last month.

Eurozone government bonds edged slightly lower, showing little reaction to a renewed rise in oil prices. Investor focus turns to this week’s central bank decisions.

Treasury yields were mostly declining Friday, after a disappointing revised estimate on U.S. economic growth and as investors weighed a delayed report on inflation from the Federal Reserve’s preferred gauge.